15 June 2015
Muscat: A syndicated loan worth $77.5 million has been jointly signed by Bank Sohar and Qatar National Bank (QNB) for Dalma Energy International's oil drilling rig project.

An event to commemorate the signing of the syndicated facility was held at Al Bustan Palace, a Ritz Carlton Hotel on June 4.

The project oversees the construction of three 1,500 HP drilling rig packages to be deployed by Dalma Energy with Saudi Aramco from Saudi Arabia, while the supplier of the drilling rig is Shandong Kerui from China.

The total facility requirement of $77.5 million has been achieved by the syndicated finance package provided by Bank Sohar, one of the most prominent banks in the Sultanate, and QNB, 'one of the world's strongest banks'.

As per the terms of the deal, Bank Sohar is the facility agent, onshore account bank, onshore security agent as well as custom bond guarantee bank.

Dalma Energy is one of the largest operators of drilling rigs in Oman with business interests in Saudi Arabia and Algeria. Within the Sultanate, Dalma Energy has grown to operating 19 land rigs under contract with Petroleum Development Oman (PDO), positioning itself as the largest drilling contractor in Oman.

Dalma Energy 

Dalma Energy has created jobs for 1,669 people in Oman, out of them 1,524 or around 91.3 per cent are Omani.

Attending the event on behalf of Bank Sohar were Rashad Ali Al Musafir, acting chief executive officer; Sasi Kumar, deputy general manager and head of strategy and corporate banking; Jeanan S. Sultan, Sr. AGM government institutions and project finance and syndication; and Sanjeet Kumar Verma, head of project finance and syndication.

The event was also attended by Saad Musa Al Jenaibi, general manager of QNB Oman and Juma Al Sulaimani, acting head of corporate at QNB Oman.

Representing Dalma Energy International were Sheikh Salah Al Qahtani, chairman; Fredric Young, chief executive officer; and Rajat Khurana, chief financial officer.

Commenting on the occasion, Bank Sohar's acting CEO said, "This agreement marks yet another significant accomplishment for Bank Sohar. As a proud Omani bank, we are pleased to finance such a significant project. The syndication reinforces our capabilities and commitment to continually collaborate with local and international corporates towards supporting key strategic projects that contribute towards Oman's economic growth and prosperity."

The general manager of QNB Oman said, "This agreement reflects the bank's commitment to maintain and further enhance QNB's position as a leading financial institution in the country and in MENA region. QNB is committed to support the business community of Oman by fulfilling their financing requirements and supporting growth of Oman's economy. QNB is also working closely with the local banks to jointly support large value projects, which is well reflected in this transaction."

© Times of Oman 2015